How can i eliminate rangeing markets from the equation???

• 03/03/2017 at 6:47 AM #27011
  Pleidian

  Hi all, has anyone got any suggestions as too how i can eliminate range trading markets from the equation as i find in backtests and in auto trading it confuses pro order big time and the equity curve goes haywire.

  cheers

  Pleidian

  

  Pleidian

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  03/03/2017 at 8:28 AM #27012
  Wing

  Well, unless you are trading some form of mean reversion, it will go haywire. Introduce filters based on TrendIndex, AverageTrueRange, Over/under two different moving averages, Choppiness index, linear regression, fisher index, ADX, or whatever works for you.

  Or, when system experiences losses, reduce positionsize and increase when winning.

   

  

  Wing

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  03/03/2017 at 6:10 PM #27090
  Nicolas

  There is not hidden truth to know how to avoid with efficiency ranging market. Most of the time it is already too late to avoid it, we are already inside the range.
  If your strategy is a trend following one, you can switch to a mean reversion one when you loose many times in a row.
  Comparing changes of the last higher high and lowest low (or their differences, their width) could help. Slope of a linear regression or moving average of different types also.

  

  Nicolas

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